Must disputes related to the Hydrodog franchise be conducted on an individual basis?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.1 Agreement to Arbitrate.
You and we acknowledge that resolving disputes prior to commencing arbitration hearings or court proceedings is in the best interests of both parties, all other franchisees and our System.
Therefore, the parties agree that they will seek to settle any dispute between them through good faith negotiations prior to arbitration.
However, if the parties are unable to settle the dispute or controversy, then except as expressly provided to the contrary in this Agreement, all disputes and controversies between you and we, including allegations of fraud, misrepresentation and violation of any state or federal laws, rules or regulations, arising under, as a result of, or in connection with this Agreement or the HydroDog Business are subject to and will be resolved exclusively by arbitration conducted according to the then current commercial arbitration rules of the American Arbitration Association.
- 21.2 Notice of Dispute.
The party alleging the dispute must provide the other party with written notice setting forth the alleged dispute in detail.
The party who receives written notice alleging the dispute will have thirty (30) days after receipt of the written notice to correct, settle or compromise the dispute specified in the written notice.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, disputes between the franchisee and Hydrodog are subject to resolution through good faith negotiations and, if necessary, arbitration. The FDD states that resolving disputes prior to arbitration or court proceedings is in the best interest of both parties and the Hydrodog system.
Specifically, if good faith negotiations fail, disputes will be resolved exclusively through arbitration under the then-current commercial arbitration rules of the American Arbitration Association. This arbitration clause applies to all disputes and controversies, including allegations of fraud, misrepresentation, and violations of state or federal laws, arising from or connected with the Franchise Agreement or the Hydrodog business.
Before initiating arbitration, the party alleging the dispute must provide written notice detailing the issue. The receiving party then has thirty days to correct, settle, or compromise the dispute. This process emphasizes initial attempts at resolution before resorting to arbitration, but the document does not specify whether disputes must be handled on an individual basis, or if class action is permitted.